Question
If an allequity firm is expected to earn and pay out a $4.00 dividend forever (in perpetuity), what is the value of the firm's stock
If an allequity firm is expected to earn and pay out a $4.00 dividend forever (in perpetuity), what is the value of the firm's stock given a cost of equity of 9.60 percent?
$22.09
$41.67
$44.67
$44.17
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
